trends, conclusions and identification of key areas for The objective was to damage the brand image of Nestlé and, thereby, force the organization to make its supply chain more sustainable. These challenges shed light on possible future directions for research in SSCM. Each heading below represents a major trend in the literature relevant to supply chain management and sustain-, ability about IKEA. IKEA suppliers, are required to prevent workers from exposure to severe safety hazards, are required to maintain transparent and, reliable records on employee working hours and wages, as well as provide accidental insurance to all workers for. Despite such barriers, within one year, the largest, ). 1. Furthermore, an analysis of the effects of SSCM practices on social and envir-, onmental factors would be valuable as it would provide concrete evidence on the effectiveness of a firm. Additionally, there is scarce literature on how the adoption of corporate sustainabil-. Why is IKEA so cheap? Lastly, compo-, nent relates to the corporate strategy beyond a narrow functional perspective to embody a broader view of sus-. Our analysis focussed on IKEA, tainability efforts within the three broad categories of SCM: inbound functions such as purchasing and procure-. In 2009, Greenpeace launched an aggressive campaign against Nestlé, accusing the organization of driving rainforest deforestation through its palm oil suppliers. With an annual circulation of over 100 million copies, the IKEA catalogue is frequently claimed to. Secondly, it is essential that environmental impacts are monitored across the entire value chain. Firms need leadership, culture, and people. Literature reviews reveal that assessing social sustainability in the context of the footwear supply chain in an emerging economy is still an under-researched area. In this paper, we review the current state of academic research in sustainable supply chain management, and provide a discussion of future direction and research opportunities in this field. It establishes the minimum requirements for environmental, social, and working condi-, , establishes primary compliances for all sup-. Firstly, legal com-, pliances require that IKEA suppliers adhere to and comply with relevant applicable national laws or IKEA WAY, specific requirements. Although research on supply chain management has made many valuable contributions, there is a dearth of empirical evidence and theoretical reflection on the characteristics of supply chains that operate mainly in developing and emerging economies. for people, society and. Therefore, this study investigates enablers of social sustainability in the footwear supply chains in Bangladesh using the Best-Worst method. out the minimum criteria for all wood products supplied to IKEA (IKEA Group, harvesting by illegal methods, from operations involved in forest-related social conflicts, or from areas identified, as Intact Natural Forests (INF). Practitioners can easily use the proposed framework for highlighting SCM practices that impact sustainable performance more positively, depending on their objectives. Prevention of child labour. IKEA acknowledges the fundamental prin-. The mentioned researches reveal that promoting a strong economic bottom line, sustainability practices can be successfully implemented across companies' entire supply chain, including second and third levels of suppliers to achieve positive social and environmental impacts. Business ethics encompasses the widespread understanding of IKEA, Prevention Policy as an integral part of IWAY. Diese reichen von Verpackungsverzicht und -reduktion über Mehrweg und Substitution hin zu komplexeren Verfahren wie ein Re-Design von Verpackungen oder das Angebot weiterer Serviceleistungen. issues to gain positive environmental and social impacts, and achieve economic performance. ciples of Human Rights defined by the United Nations Universal Declaration of Human Rights. They can provide integrated solutions across interconnected issues area such as economic, social, environmental, and security action. Ingka Group franchises the IKEA Retail system and methods from Inter IKEA Systems B.V. in the Netherlands. Ingka Holding B.V. and its controlled entities. Additionally, suppliers are required to maintain adequate internal air quality, appropriate temperature and noise levels, have, appropriate lighting, provide drinking water and hygiene facilities, but most importantly IKEA suppliers shall have. report records, health and safety training, having necessary machine safety devices, provide safety instructions. Inter IKEA Group Financial Summary FY17. This includes a broad list of issues such as incident. This Case is about MARKETING, SOCIAL ENTERPRISE, SUPPLY CHAIN, SUSTAINABILITY. 1684 0 obj <> endobj Start-up requirements. As evident through, the IKEA case study, an holistic approach to sustainability focussing on all three pillars, that integrate only one or two pillars (Brockhaus, Wolfgang, & Knemeyer, 2013; Morali & Searcy, increasing its marketshare and corporate growth IKEA maintained a strong economic position while focussing on, an overarching commitment to manage its supply chain by focussing on social and environmental sustainability, This research paper is organised as follows. Hypothesis developed is tested by using multivariate canonical correlation analysis to model the regression relationship of 54 manufacturing organizations. Unternehmensverantwortliche können anhand der Typen sondieren, welche Verpackungsinnovationen zu ihrem Unternehmen passen, und abschätzen, welche Änderungen damit einhergehen würden. bench-marking with international. Regarding their focus on the outcomes, interviewees believe that KMI helps them achieve short-term outcomes more as opposed to long-term outcomes (sustainability). The IKEA Group approach to sustainability How we manage sustainability in our business. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. 1714 0 obj <>stream The ambition is 100% renewable and recycled materials by 2030 Increasing renewable energy - 18,240 solar panels installed on IKEA Industry production unit in Portugal - enough to power 2,700 homes Prominent cases such as these have led to the prevailing view that sustainable supply chain management (SSCM) is primarily reactive and propelled by external pressures. Close. A lack of supply chain integration was identified and companies reported a tendency toward a “mandated” implementation when extending efforts across companies. Positive . as preventing water and ground pollution from the reduction of chemicals and pesticides. Environmental. Third, this paper extends the supply chain literature by arguing that supply chains face additional barriers to sustainability in developing and emerging economies, which contribute to a higher degree of complexity and uncertainty due to the existence of highly turbulent business environments and institutional voids. A typology of. Considerable research effort is being devoted to understanding how organisational initiatives and government policies can be structured to facilitate incorporation of sustainability into design and management of entire supply chain. An in-depth case study of the upstream oil and gas industry supply chain in Brazil was used to develop propositions about supply chains that operate in developing settings. Progressign sustainability implementation. General conditions. Their approaches reflect the logic of their company cultures and management systems. IKEA is recognised for a strong corporate culture but the role of corporate, culture and the integration of SSCM are outside the scope of this case study. The sustainability of the supply chain for fresh potatoes in Britain. This is unusual as they are generally two separate steps or functions of the whole supply chain. By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. For example, Vasileiou and Morris (, supply chain, it is vital that firms understand influence. Globalisation challenges increase the need to re-evaluate our approach to basic factors such as land, capital, tive approach to change their practices and explore opportunities through social and environmental programmes, ers, academics, and policy makers acknowledge the importance of proper SCM as a key driver to gain local and, This study provides several relevant findings. IKEA has in place many reverse logistics efforts such as a cardboard, ). Sustainability in supply chain management: An overview. Steve Howard, IKEA Group Chief Sustainability Officer, says, “action on sustainability and climate change is driving innovation in the way we power our stores, the material we use and the products we offer. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. They expect that the endeavor will add to their costs, deliver no immediate financial benefits, and quite possibly erode their competitiveness. They are required to abide the UN Convention on, the Rights of the Child as well as national and international laws; this is applicable to IKEA, 11. The world is moving towards a environmental restricted scenario where excellence and growth in business is contingent upon good governance and excellent green sustainability related policies, strategies and long-term values to stay ahead in competition. Lastly, a general discussion piece coupled with limitations and opportuni-. Although scholarly literature now includes sustainability in research about supply chain management, successfully adopting sustainable supply chain management (SSCM), ). We conclude the paper by discussing environmental initiatives in India and the relevance of sustainability discussions in the context of the Indian economy. Sustainability has long been on the agenda at many companies, but for decades their social, environmental, and governance activities have been disconnected from core strategy. They can facilitate universal dialogue to arrive at joint solutions and mobilize new constituencies to join businesses, governments and international organizations to address global emerging issues and challenges, and they also can legitimize new norms, structures and processes for international cooperation on sustainable development. In this way, corporate sustainability performance is an integral measure of a firm. Thus, supply chain managers will perceive benefits from SSCM other than merely the reduction of risk from reputational damage through stakeholder activism. Integration and relational awareness are concepts that also animate the SSCM literature and are present in our, IKEA case study. 6. In order to manage risk, sustainable development must incorporate the notion of, security and protection from harms, including biodiversity loss, climate change, freshwater scarcity, food insecur-, holders, and then evidence of honest consideration of their feedback and input. Both the initiatives have led to increased farming efficiencies and higher cotton yields, decreases in, water usage, chemical fertilisers, and pesticides while simultaneously cutting costs, boosting farmers. by supply chain organisations as well as those skills areas that are the most challenging IKEA ensures their commitment to responsible and sustainable palm. local charity partners to rehome the old furniture (IKEA Group, As established through the literature review, the concept of SSCM and the challenges associated with implement-, ing SSCM efforts is broad. © 2008-2021 ResearchGate GmbH. Carter, C.R., & Rogers, D.S. - Duration: 10:07. By 2014, IKEA Group was really the biggest house providing business, with EUR 28.5 billion of deals, and prepared to get to EUR 50 billion by 2020, generally from surfacing markets. Corporate sustainability and organizational culture. component due to reductions in damages, workplace injuries, and lead time (OptiLedge, ces between using loading ledges and traditional wood pallets is the flexibility of the loading ledges as they allow, load carrier is adjusted to fit the products, ing ledges provides better cube utilisation due to the elimination of empty spaces between the units and the util-, isation of the space previously taken up by wood pallets, Marketing. lists, establish proper procedures, provide employee training, as well as ensure proper labelling, storage, handling, 5. Amongst other topics, issues associated with supply chain governance, standards for SSCM, collaboration with suppliers, performance measurement, and accountability within the supply chain are explored. In particular, the study focuses on developing a better understanding of: “how do companies involve other members of their supply chain into their sustainability efforts?” Building upon themes that emerged from the data, a typology for the supply chain implementation of sustainability initiatives is proposed. Erstes Zwischenergebnis ist eine Taxonomie der nachhaltigkeitsorientierten Verpackungsreduktion (novo-Taxonomie). the IWAY Standard, the IKEA Group Sustainability Strategy for 2020, and the IKEA Group Sustainability Report . future research. But how these factors exactly impact the organisational performance based on green supply chain management is being explored in this research. Sustainability initiatives within the corporate strategy can only be accomplished, ). Retrieved from http://, www.ikea.com/gb/en/doc/general-document/ikea-sustainability-strategy-people-planet-positive-pdf__1364308391513.pdf, http://www.ikea.com/gb/en/doc/general-document/ikea-read-ikea-group-sustainability-report-2016__1364331441708.pdf, ment/ikea-iway-standard-.pdf__1364450371470.pdf, general-document/ikea-2015-yearly-summary-pdf__1364308472423.pdf. Sustainability at IKEA Group Case Study Solution & Analysis. In this, ability performance is an integral measure of a firm, purchasing decisions and an organisational culture that incorporates fairness and considers the welfare of others, in the logistics process stretching from the purchasing of raw materials to the delivery of end-products to end, part of the chain. Increased concerns over the environmental impacts of organisations. Additionally, in October 2014 IKEA took a position on palm oil, palm oil has the potential to be a sustainable raw material, oil sourcing. IKEA can successfully, implement sustainability policies across their entire supply chain to include all stakeholders and their various inter-, ests while maintaining a strong economic position. to the link between supply management, proficiency, and economic performance of a firm (Hollos et al. The approach to natural resources, especially forests, as to the one of the future sustainable competitiveness resources, with the specific focus on its ownership is addressed in this article. Darnaus ateities konkurencingumo šaltiniu paieškos lemia naujas moksliniu tyrimu iniciatyvas, kuriomis būtu pletojama darnaus konkurencingumo koncepcija, apimanti darnaus vystymosi ir konkurencingumo saryši. PDF. This one case pilot study explores the extent to which IKEA has successfully integrated sustainability practices into the management of the supply chain. Additionally, IKEA suppliers will not discriminate because of race, religion beliefs, gender. The analytical assessment model, based on the relationships between a supply chain management practice and the three fields of sustainable development, serves to produce the sustainable performance profile of a practice, identified by a triad. Sustainability at IKEA Group Case Solution The strategy particularly fixated wood, which stood for 60% of IKEA Group's overall procurement in loudness and made up a crucial lever for the business to enhance its favorable influence on durability. As mentioned, forced, prisoned, bonded, or involuntary labour are not permitted. Das Verpackungsaufkommen steigt stetig an. Companies wish to understand (1) the need for knowledge management implementation (KMI) and (2) its possible enablers and outcomes to facilitate its success. Case Study of Sustainability at IKEA Group This case study focuses on the growth strategy and sustainability of the IKEA group. answer this research question, a multiple-case study was designed. The results indicated that workplace health and safety practices was the most important enabler to the social sustainability of a footwear manufacturing company’s supply chain, followed by the wages and benefits offered to the employees of the company. The aim of this paper is to help to fill this gap by exploring how supply chain sustainability can be implemented and managed in these settings. They are third in the line to conserve energy from 2012. This ensures that IKEA suppliers comply with applicable laws in classification, work-, place risk analysis, reporting and inspections by authorities. Since 2015, IKEA has been supporting more sus-, ). the eight core conventions defined in the Fundamental Principles of Rights at Work, ILO declaration June (1998), the Rio Declaration on Sustainable Development (1992), The UN Johannesburg Summit on Sustainable, Development and the Ten Principles of the UN Global Compact (2000). As a whole, IKEA stores were the world leader in the home furnishing market, capturing 4.9% of the global home furnishings market in 2011, and faced no comparable global competitor. Four supporting facets of sustainability are identified: risk management, when combined with the four supporting facets of sustainabil-, risk management, transparency, strategy and culture, , in the lower left quadrant, refers to firm management of short-term financial results within, s sensitivity to economic, social, and environmental issues. Progressing Sustainability Implementation Efforts Across Supply Chains, Why Sustainability Is Now the Key Driver of Innovation, The Relationship Between Sustainable Supply Chain Management, Stakeholder Pressure and Corporate Sustainability Performance, A Review of Sustainable Supply Chain Management Practices in Canada, Inter-organizational Knowledge Transfer in the Buyer-Supplier Relationship: A Buyer's Perspective, Skills requirements in the supply chain industry in South Africa. able supply chain management (SSCM) (Ansari & Qureshi, includes all of the following: (i) Environmental impact as an imperative; (ii) consideration of all stages across the, entire value chain for each product; and (iii) a multidisciplinary perspective encompassing the entire product life, as cooperation among companies along the supply chain while taking goals from all three dimensions of sustain-, able development, i.e. This is followed by a presentation of findings in all three broad SSCM categories, of inbound, operations, and outbound. IKEA reports in fiscal year 2016 a reduction in, reverse logistics system incorporates a supply chain that has been rede-, ). The research outcomes show effectiveness of the proposed target based planning to pinpoint crucial sustainability indices and select appropriate options to improve the indices and overall performances within desirable bounds on cost. Considering the concept of best practice, IKEA, ). A review of sustainable suppy chain management practices in Canada. Corporate social responsibility (CSR) and Environment, Social, Governance (ESG) sustainability data for IKEA Group, Furniture Stores and Netherlands IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. We analyse sustainability practices using data gathered from IKEA as a global case study. These factors in turn hinder supply chain learning and innovation, and reduce the slope of supply chains sustainability trajectories. Our Common Future. For example, IKEA tried to found a sustainable source for all their cotton, ... Walmart has had a positive impact on suppliers in India (Patibandla, 2014), this may be the case for IKEA too. SSCM is also explained as a set of managerial practices, ) state that in order to promote sustainability within a, ). The concept of sustainability has affected many areas such as supply chain, technology and management. Sustainability at IKEA Group Case Solution. This indicates that sustainability practices must be adapted to fit the logic of a firm's existing management system. 10. adopting sustainability efforts will result in economic erosion and thus a loss of competitive advantage (Nidumolu, sustainability practices across its supply chain. 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